Gold Mining in Africa Is Booming, but Investor Terms Are Getting Tougher

Ghana will require artisanal gold doré to be refined locally before export from September 1, extending a wider push to keep more of the gold trade inside the country.

Large-scale miners are already required to sell 30% of their output to GoldBod, giving the state a greater role in domestic buying and reserve accumulation.

Mali and Burkina Faso have moved further on ownership and fiscal terms. Mali allows state and local interests in new projects to reach 35%, while Burkina Faso has raised the government’s free stake from 10% to 15% and increased royalties as gold prices rise.

Private miners still dominate production across these markets, but the economics are shifting as governments seek a larger return from gold through ownership, royalties, local sales and refining requirements.

Burkina Faso Is Taking a Bigger Share of Gold Mining

Burkina Faso raised the government’s free interest in new mining projects from 10% to 15% under its 2024 Mining Code, while opening additional equity to the state and Burkinabè investors.

The IMF now places the country among the more heavily taxed mining jurisdictions in sub-Saharan Africa.

Gold royalties rise with prices and reach 7% above $2,000 an ounce. A further 1% contribution to the mining development fund takes the effective burden higher, increasing the state’s return as gold prices climb.

The government has also moved directly into mine ownership. Boungou and Wahgnion were acquired in 2024 and transferred with three related mining companies to state vehicle SOPAMIB in June 2025.

New investors are entering a market where the government owns more, collects more from production and has greater influence over who participates in the industry.

Ghana Is Tightening Control After the Gold Leaves the Mine

Ghana’s large-scale mines remain privately operated, while GoldBod has taken control of buying, assaying, valuing and exporting gold produced outside those mine operations.

Since July 1, large-scale miners have been required to sell 30% of their output to GoldBod in doré form. The purchases are made in cedis at the Bank of Ghana reference rate and at a 0.55% discount.

From September 1, self-financing aggregators must refine artisanal doré in Ghana before export.

Export applications will only be processed after local refining and assay requirements are met, with XRF testing also becoming mandatory for purchases.

Some GoldBod-linked buyers went weeks without expected advance funding in August and turned to loans to keep trading.

Private companies still operate the mines, but GoldBod now sits deeper inside the market that moves the gold out of Ghana.

Record Gold Demand Is Raising the Stakes for African Producers

Global gold demand reached 2,522 tonnes in the first half of 2026, up 2% from a year earlier, while its value hit a record $380 billion, according to the World Gold Council. Demand including over-the-counter transactions reached 1,269 tonnes in Q2.

Central banks bought 289 tonnes during the quarter, up 62% from a year earlier, as the average LBMA gold price climbed to $4,506.29 an ounce, 37% above the Q2 2025 average. Mine production rose 2% to about 966 tonnes.

Gold-backed ETFs recorded 45 tonnes of outflows and jewellery demand weakened, but bar and coin investment held at 307 tonnes. Official-sector buying also remained strong even as some investment channels softened.

The price move has made royalty increases, state stakes and local refining requirements more valuable than they were a decade ago.

Ghana, Mali and Burkina Faso are tightening terms at a time when the gold coming out of their mines is worth substantially more.

Gold Mining in Africa Will Be Priced on Policy as Much as Production

Governments are taking a larger role in how gold is licensed, sold and refined as they move to reduce smuggling, raise tax receipts and keep more of the trade inside producing countries.

Higher royalties, compulsory local sales and wider state ownership raise the cost of entering some markets. Delayed payments and abrupt rule changes can make financing harder before production begins.

Large reserves and low-cost mines will continue to attract capital. Policy terms will carry more weight in deciding where that capital goes.

Gold mining in Africa remains open to private investment, but governments are claiming a larger share of the economics around each project.